UP's power-starved business seeks nirvana in Modi's Gujarat

Uttar Pradesh's infrastructure problems, especially power and water, may just be prove to be a boon for Narendra Modi's Gujarat. Industrialists in Noida are weighing the advantages of moving out if infrastructure is not improved.

Fed up with erratic power supply in Uttar Pradesh, the Noida Entrepreneurs' Association has reportedly written to the Narendra Modi government asking it to provide them plots in Mehsana district so that they could begin industrial operations within two years.

"Even the big names... like Tata and Maruti have shifted base to Gujarat because the government has built an excellent environment in the state for industrial development," The Economic Times said today, quoting NEA president Vipin Malhan.

In terms of investments, it is Advantage Modi. AFP

Riding on financial and political stability, as well as a sound industrial policy, Modi last month hardsold Gujarat as the emerging auto hub of Asia to Japanese investors. He also apprised Japanese companies about Gujarat's new vibrant textile policy and the textile park policy. The timing of Modi's visit was perfect. At a time when Centre was dithering and the violence in Maruti's Manesar plan in Haryana had shocked Japanese investors, Modi's trip had a becalming effect.

Earlier this month, China's ambassador to India, Zhang Yan, reached out to Modi and expressed China's interest in working together to sharpen Gujarat's industrial and manufacturing edge. As Firstpostreported earlier, "By rolling out the red carpet for Modi, Chinese officials are making a calculated investment in the future, which they know will be well received by a leader who prides himself as an embodiment of Gujarati asmita (self-respect)."

While competition for investments is growing, Gujarat claims a share of about 36 percent in the total number of completed projects put to service delivery under the public-private partnership (PPP) model.

Of the total 227 PPP projects worth over Rs 68,000 crore under operation in India as of December 2011, Gujarat accounted for about 31 completed PPP projects worth over Rs 24,000 crore, according to a study by Assocham.

The Tata Nano project's swift relocation to Gujarat after West Bengal ousted it earned him kudos from industry honchos. Suzuki is already looking at Gujarat for expansion. And now other Indian businessmen are looking to gain from Gujarat's lower power tariffs and its smooth land acquisition policy.

Moreover, companies with factories in Gujarat have quicker and easier access to markets in west and north India due the state's policy of developing many private ports.